SIV Portfolio receivers announce plan, will make Dec. 17 distribution

By Caroline Salls

Pittsburgh, Dec. 11 – SIV Portfolio plc’s receivers announced on Tuesday the plan to distribute remaining funds to creditors and close the company’s receivership.

According to a Deloitte LLP news release, the funds will be distributed to senior creditors, consisting of senior noteholders and liquidity providers.

However, the receivers said there are not enough funds available to allow any payment to be made to holders of the SIV’s euro capital notes or any other party that is subordinate in payment priority. There is no expectation that any future distribution of remaining assets would be enough to repay the company’s outstanding obligations to senior creditors in full, so holders of mezzanine notes and junior capital notes will not receive payment.

The receivers said they held $64.3 million in funds as of Dec. 7, and no other assets are currently held by the receivers or realizable.

Immediately following the last distribution in August 2008, total senior obligations of the company were $2,762,479,609. That amount has since increased with accrued interest. The receivers estimate that total senior obligations, including interest, will be $3,266,329,720 as of Dec. 17.

According to the release, a fourth distribution will be made on or around Dec. 17. The total amount of the fourth distribution will be $60 million.

The receivers said SIV’s board is continuing to explore placing the company into liquidation in the Republic of Ireland in order to facilitate the dissolution once a final distribution of assets has been made.

Once all relevant steps have been taken to allow the company to be dissolved through a liquidation process, any remaining funds will be distributed to creditors of any prior ranking obligations to the senior obligations and then to senior creditors immediately before the conclusion of the proposed liquidation.

Dublin-based SIV was formerly Cheyne Finance plc.

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